Alberta's real estate market is preparing to face its worst time since the world financial crash. According to BBN, and economic recovery can halt broad housing developments in the future.
Further according to BBN, Calgary is expected to see home prices falling down up to 3 percent this 2016 aside from the forecast that there will be fewer homes sold. This speculation come from the forecast by Royal LePage. Furthermore, in such situation, job losses are expected to pile up as vacancy rates also soar higher. Sellers would have to get used to the fact that their homes might not be worth what they were at least a year ago.
Edmonton should all also see prices falling up to 2 percent. On the other hand, Alberta's residential market in 2015 saw housing began dropping 39 percent in one month to four-year lows according to Canada Mortgage and Housing Agency
Further according to BBN, Bank of Montreal economist Robert Kavcic wrote "The precipitous drop in Alberta building activity now appears to be reflecting much weaker demand conditions in the province."
Economist Marc Pinsonneault at National Bank predicted that housing starts would also drop below 30,000 in Alberta this year. This is said to be the first time in five years.
The publication also stated that Royal LePage chief executive Phil Soper said many sellers has refused to drop their prices last year. Furthermore, they instead opted to find out if it was just a temporary downturn. According to BBN, those two had helped push sales down 26 per cent in Calgary last year. With this, Mr. Soper reportedly said, "It's really hard for homeowners to get their head around the fact that their home might be worth less than they thought. People just said I'm not selling at a discount."
